Nifty May Plummet to 22,000 on Break of Next Support Level: Analysts Warn of Market Volatility Ahead of Truncated Trading Week

Market Update: Indian Equities Extend Correction Amid Global Uncertainty

Key Figures:

• Sensex: closed at 73,583.22, down 1,690.23 points or 2.25%
• Nifty: closed at 22,819.60, down 486.85 points or 2.09%
• Crude oil prices: remained above USD 100 per barrel
• Rupee: experienced a sharp fall
• Foreign fund outflows: persisted

Market Performance

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The benchmark equity indices Sensex and Nifty settled sharply lower on Friday, extending their ongoing corrective phase due to continued uncertainty over the US-Iran conflict and its impact on global markets. The Nifty opened on a subdued note and remained under sustained selling pressure throughout the session, settling near the day's low. The Sensex also dropped significantly, with a decline of 1,690.23 points or 2.25%.

Technical Analysis

Market analysts believe that the Nifty is hovering near key support levels and may see further downside if these levels are breached. Immediate support is seen around 22,500, while a decisive break below this level could drag the index towards 22,000.

Analysts at Choice Broking expect the index to consolidate in the 22,450-23,850 range in the coming weeks amid volatility driven by rising crude prices and geopolitical tensions. A breach below the previous week's low of 22,471 may lead to further downside towards 22,100 and 21,800 levels.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Weekly Performance

Benchmark indices declined for a fifth consecutive week on March 27, marking their longest losing streak in about eight months. For the week, both Sensex and Nifty fell about 1.3% each, while broader markets saw small-cap and mid-cap indices decline 0.6% and 1.4%, respectively.

Recent Performance

Since February 28, when the US-Israeli conflict involving Iran began, both Sensex and Nifty have fallen about 9.5%.